LEASES

12 Months Ended

Dec. 31, 2021

LEASES

LEASES

NOTE 7. LEASES

The components of lease expense for the year ended December 31, 2021 are as follows:

	Year Ended December 31,
	2021		2020
	(in thousands)
Operating lease costs	$	8,753	$	8,069
Finance lease costs:
Amortization of assets		15,448		20,555
Interest on lease liabilities		2,584		3,264
Total finance lease costs		18,032		23,819
Variable and short-term lease costs		2,508		2,066
Total lease costs	$	29,293	$	33,954

Supplemental information and balance sheet location related to leases is as follows:

	December 31, 2021			December 31, 2020
Operating leases:	(dollars in thousands)
Operating leases - right-of-use assets	$	22,898		$	28,154
Current operating lease obligations		6,679			6,838
Long-term operating lease obligations		16,644			21,690
Total operating lease liabilities	$	23,323		$	28,528
Finance leases:
Property and equipment, at cost		137,736			86,281
Accumulated amortization		(47,699)			(22,991)
Property and equipment, net	$	90,037		$	63,290
Current finance lease obligations		14,095			11,655
Long-term finance lease obligations		56,274			54,482
	$	70,369		$	66,137
Weighted average remaining lease term:		(in months)			(in months)
Operating leases		50			60
Finance leases		35			43
Weighted average discount rate:
Operating leases		4.53	%		4.59	%
Finance leases		3.69	%		3.73	%

Supplemental cash flow information related to leases is as follows:

	December 31, 2021		December 31, 2020
Cash paid for amounts included in measurement of liabilities:	(in thousands)
Operating cash flows from operating leases	$	190	$	287
Operating cash flows from finance leases		2,584		3,264
Financing cash flows from finance leases		1,672		31,519
ROU assets obtained in exchange for lease liabilities:
Operating leases	$	1,355	$	23,074
Finance leases		17,070		8,481

Maturities of lease liabilities as of the year ended December 31, 2021 are as follows:

	Finance Leases		Operating Leases
	(in thousands)
2022	$	16,435	$	6,840
2023		26,765		6,327
2024		18,078		6,012
2025		14,348		5,086
2026		86		762
Thereafter		—		503
Total lease payments		75,712		25,530
Less: Imputed interest		(5,343)		(2,207)
Total lease obligations		70,369		23,323
Less: Current obligations		(14,095)		(6,679)
Long-term lease obligations	$	56,274	$	16,644

Other commitments

As of December 31, 2021, the Company had $62.4 million in purchase commitments for the acquisition of revenue equipment, of which approximately $10.2 million is cancellable until the end of first quarter 2022.  It is anticipated that these purchase commitments will be funded first through cash provided by operations and proceeds from the sale of used revenue equipment and secondarily from borrowings under the Company’s Credit Facility.